NasdaqGS:DNKN

Stock Analysis Report

Executive Summary

Dunkin' Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide.

Snowflake

Fundamentals

Second-rate dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

How has Dunkin' Brands Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

NasdaqGS:DNKN

3.0%

US Hospitality

1.2%

US Market


1 Year Return

8.3%

NasdaqGS:DNKN

0.1%

US Hospitality

1.7%

US Market

DNKN outperformed the Hospitality industry which returned 0.1% over the past year.

DNKN outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

DNKNIndustryMarket
7 Day-2.0%3.0%1.2%
30 Day-2.9%7.2%4.9%
90 Day-0.04%3.3%3.7%
1 Year10.5%8.3%2.5%0.1%3.9%1.7%
3 Year78.7%67.5%49.0%39.1%47.2%37.7%
5 Year99.0%77.9%41.2%26.1%60.0%42.4%

Price Volatility Vs. Market

How volatile is Dunkin' Brands Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dunkin' Brands Group undervalued based on future cash flows and its price relative to the stock market?

28.79x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Dunkin' Brands Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Dunkin' Brands Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Dunkin' Brands Group is overvalued based on earnings compared to the US Hospitality industry average.

Dunkin' Brands Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Dunkin' Brands Group is poor value based on expected growth next year.


Price Based on Value of Assets

Dunkin' Brands Group has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is Dunkin' Brands Group expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Dunkin' Brands Group's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Dunkin' Brands Group's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).

Dunkin' Brands Group's revenue growth is positive but not above the United States of America market average.

Dunkin' Brands Group's earnings growth is positive but not above the United States of America market average.

Dunkin' Brands Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Dunkin' Brands Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Dunkin' Brands Group performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Dunkin' Brands Group's year on year earnings growth rate has been positive over the past 5 years.

Dunkin' Brands Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Dunkin' Brands Group's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

It is difficult to establish if Dunkin' Brands Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Dunkin' Brands Group used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Dunkin' Brands Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dunkin' Brands Group's financial position?


Financial Position Analysis

Dunkin' Brands Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Dunkin' Brands Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Dunkin' Brands Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Dunkin' Brands Group's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (8.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).


Balance Sheet

Low level of unsold assets.

Dunkin' Brands Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Dunkin' Brands Group's current dividend yield, its reliability and sustainability?

2.01%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Dunkin' Brands Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Dunkin' Brands Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Dunkin' Brands Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Dunkin' Brands Group only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Dunkin' Brands Group's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Dave Hoffmann (51yo)

1.2yrs

Tenure

US$4,833,544

Compensation

Mr. David L. Hoffmann, also known as Dave, has been Chief Executive Officer of Dunkin' Brands Group, Inc. since July 11, 2018 and its Director since July 10, 2018. Mr. Hoffmann serves as the President of D ...


CEO Compensation Analysis

Dave's remuneration is about average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

51yo

Average Age

The tenure for the Dunkin' Brands Group management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

The tenure for the Dunkin' Brands Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gary Heckel

    VP - Concept Development & Restaurant Operating Systems and Member of the Executive Council

    • Tenure: 0yrs
  • Karen Raskopf (64yo)

    Chief Communications & Sustainability Officer and Senior VP of Corporate Communications

    • Tenure: 1.6yrs
  • Tony Weisman (59yo)

    Senior VP & Chief Marketing Officer of Dunkin' Donuts U.S.

    • Tenure: 2yrs
    • Compensation: US$1.63m
  • Scott Murphy (46yo)

    Senior VP & COO of Dunkin' U.S.

    • Tenure: 6.6yrs
    • Compensation: US$1.31m
  • Stacey Caravella

    Senior Director of Investor Relations & Competitive Intelligence

    • Tenure: 0yrs
  • Dave Hoffmann (51yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: US$4.83m
  • Jack Clare (48yo)

    Chief Information & Strategy Officer

    • Tenure: 4.5yrs
  • Rick Colón (57yo)

    Senior Vice President of Operations & Development

    • Tenure: 0yrs
  • Kate Jaspon (42yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.33m
  • William Mann

    Senior VP

    • Tenure: 0.5yrs

Board Members

  • Anthony DiNovi (56yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$184.84k
  • Mark Nunnelly (60yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$184.84k
  • Nigel Travis (69yo)

    Non-Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: US$5.09m
  • Mike Hines (63yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$201.45k
  • Raul Alvarez (64yo)

    Lead Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$219.13k
  • Caroline Apovian

    Member of Nutrition Advisory Board

    • Tenure: 0yrs
  • Aryeh Stein

    Member of Nutrition Advisory Board

    • Tenure: 0yrs
  • Janice Bissex

    Member of Nutrition Advisory Board

    • Tenure: 0yrs
  • Irene Britt (56yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$195.55k
  • Dave Hoffmann (51yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: US$4.83m

Company Information

Dunkin' Brands Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dunkin' Brands Group, Inc.
  • Ticker: DNKN
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$6.656b
  • Shares outstanding: 82.72m
  • Website: https://www.dunkinbrands.com

Number of Employees


Location

  • Dunkin' Brands Group, Inc.
  • 130 Royall Street
  • Canton
  • Massachusetts
  • 2021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNKNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2011
2DBDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2011

Biography

Dunkin' Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide. The company operates through five segments: Dunkin' U.S., Dunkin' Interna ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:19
End of Day Share Price2019/09/13 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.